SOFTS-NY cocoa jumps above 4-year low, arabica falls

NEW YORK/LONDON, Jan 31 (Reuters) - New York cocoa futures on ICE rebounded from a four-year low on Tuesday, climbing for the first time in five sessions on short-covering, while arabica coffee fell after beneficial rain in top grower Brazil.

Sugar future were slightly higher.

March New York cocoa futures settled up $25, or 1.2 percent, at $2,103 per tonne, after falling to $2,072, the spot contract's weakest since March 2013.

"The way that we closed yesterday, I think most people anticipated that we'd find some follow-through (selling) on the recent lows," one dealer said.

"We had a bit of a drop off but the market held up. And I think it stirred a little bit of buying and we've had a short-covering response."

March London cocoa settled down 1 pound, or 0.06 percent, at 1,686 pounds per tonne.

"Although we expect cocoa demand to pick up slightly in 2017, it will remain subdued," analysts Capital Economics said in a note.

"Saturation of the biggest cocoa markets, the EU and the U.S., has meant that growth in cocoa demand recently has largely been driven by the emerging markets, notably Brazil and Russia."

Because of this, cocoa prices will likely rise slightly to $2,150 by the end of 2017, it said.

Traders said the market received some support from a drop in bean exports from top grower Ivory Coast.

March arabica coffee settled down 1.6 cent, or 1.1 percent, at $1.4955 per lb, after deepening the prior session's losses and dipping below the 200-day moving average.

Extended losses came after the 50-day moving average fell below the 200-day moving average on Friday, forming a death cross on the chart, which can potentially raise a bearish flag for technical traders.

Also pressuring prices was beneficial rain in Brazil, where precipitation was forecast over the next 10 days.

"Much wetter weather in the 6-10 day period across Minas Gerais should lead to significant improvements, favoring cherry growth," said MDA Information Systems in a daily report.

March robusta coffee futures settled down $15, or 0.7 percent, at $2,222 per tonne, as the market followed arabica prices lower.

March raw sugar futures settled up 0.14 cent, or 0.7 percent, at 20.45 cents per lb, while May white sugar settled up $2.20, or 0.4 percent, at $544.20 per tonne. (Reporting by Marcy Nicholson in New York and Mariana Ionova in London; Editing by Greg Mahlich and Grant McCool)